The Euro Crisis & Bankers Bonuses ~ Dejavu Anyone?
Well Friday has arrived again and it really has been an eventful week in the world of finance, at the same time though not an original one. This week many of the financial problems of 2012 that investors thought were dead and buried, seem to have reared their ugly head once more.
The Euro Crisis
Most of the people in the European Union and in the stock markets were probably hoping that they’d seen the back of the Euro Crisis by now but this week quickly brought them back down to earth. Personally I’m amazed that the fear ever went away as nothing has really changed in the Eurozone. Eurozone economies are still not growing, the debt of Eurozone countries remains the same and the people who live in those countries aren’t exactly on board with austerity.
The only thing that calmed the markets down on the Euro was a promise from the ECB that it would buy unlimited amounts of Spanish and Italian bonds to keep bond yields down should the need arise. I wonder if they’re regretting that decision as they see Italian bond yields rise and the Italian people reject austerity.
Another scandal that’s been back in the spotlight this week is that of banker’s bonuses. Firstly the EU has approved a cap on the amount bankers can be paid in bonuses to one year’s salary, something which the UK is not too happy about as it probably affects the city of London more than any other city in the EU.
The story that caught my eye though was the huge loss at RBS. The UK government owned Royal Bank of Scotland made a £5.2 billion loss in the last financial year and no that’s not a typing error, BILLION! Yet in that same year they paid out over £600 million in bonuses to staff. Call me crazy but something seems amiss there. What do you think? Do bankers still deserve a bonus even if the bank they work for loses a MASSIVE amount of money?
Here are a few great blog posts for you to enjoy from some of the best personal finance blogs around!
Mr.CBB over @ The Canadian Budget Binder talks about the cost and quality of childcare! ~ Daycare-You Are the Voice for Your Children
Pauline @ Reach Financial Independence shows us how to visit the UK on a budget ~ Bang for your buck, UK edition
Emily Guy Birken over @ One Smart Dollar talks about the rise of the 15 year mortgage ~ The Rise of the 15-Year Mortgage
Average Joe @ The Free Financial Advisor gives newbie investors some great tips ~ 5 Great Stock Buying Tips to Practice Today
Grayson @ Debt Round Up Shows that it’s not just UK savers who are getting hammered by low interest rates ~ America Saves Week – The Dwindling Savings Rate
Miss T @ Prairie Eco Thrifter explains why a glass half full is always best ~ Make Life Better for Yourself: Change Your Attitude
Matt @ Live Well on Less explains some new pension rules ~ New Rules on Pension Annuities
Have a great weekend everyone!